Asia stocks tumble as AI rout batters Japan, S. Korea Ayushman Ojha Thu, November 5, 2026 at 10:42 PM EST 3 min read 005930.KS -6.70% ^GSPC -4.36% ^DJI -3.44% ^IXIC -5.52% SKHY -11.72% Investing.com-- Asian stocks tumbled Friday, with Japan and South Korea leading a broad regional selloff, as investors dumped tech shares amid growing concerns about artificial intelligence investment after the U.S. midterm elections.
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The rout followed Wall Street's steepest single-day decline in more than a year on Thursday. The S&P 500 tumbled 4.4%, the Nasdaq Composite slumped 5.5% and the Dow Jones Industrial Average lost 3.4%. The Philadelphia Semiconductor Index plunged 12.3%.
U.S. stock futures traded higher in Asian trading Friday by 02:33 GMT.
South Korea's KOSPI plunged as much as 8.8% to 4,911.28 points in early trading, hitting its lowest since early February. The Korea Exchange triggered a 20-minute circuit breaker after an 8% drop, temporarily suspending stock and derivatives trading.
KOSPI last traded 4.1% lower, with Samsung Electronics (KS:005930) falling 4.1%, and SK Hynix (KS:000660) sliding 7%.
Japan's Nikkei 225 fell as much as 7.1% and last traded around 5.5% lower, putting the benchmark more than 20% below its June record high and bringing it into bear-market territory. Japan's broader TOPIX index also fell nearly 6%.
Semiconductor equipment maker Advantest (TYO:6857), memory-chip producer Kioxia Holdings (TYO:285A) and SoftBank Group (TYO:9984) were among the biggest losers, extending a rout in technology stocks. The selloff followed Thursday's declines, when Advantest plunged 15%, Lasertec dropped 14%, and Kioxia fell 13%.
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In the U.S., Qualcomm (NASDAQ:QCOM) shares sank nearly 10% overnight after its smartphone chip sales missed analyst estimates, adding to pressure on semiconductor companies already facing questions over elevated valuations and the returns on massive AI infrastructure investments.
The election outcome has added another layer of uncertainty. Democrats' gains in the midterms have raised concerns that a Democrat-controlled Congress could increase scrutiny of data-centre developments and potentially slow construction, particularly in states where candidates campaigned against large-scale projects.
Elsewhere in Asia, Taiwan's technology-heavy Taiwan Weighted index fell 4.1%. Taiwan Semiconductor Manufacturing Co (TSMC) (TW:2330) shares also fell more than 4%.
China's Shanghai Composite fell 1%, while the clue-chip Shanghai Shenzhen CSI 300 slipped 1.3%. Hong Kong's Hang Seng index edged 0.3% lower.
Singapore's Straits Times Index dropped 2.4%, while Australia's S&P/ASX 200 fell 1%.
Futures tied to India's Nifty 50 inched down 0.3%.
While expectations that Democrats' election victory could accelerate efforts to end the Iran war had initially supported risk appetite, concerns over AI investment and semiconductor earnings have since taken centre stage.
Oil prices extended gains in Asian trading Friday after sharp losses earlier this week, as investors weigh uncertainty about President Donald Trump's next move regarding Iran after the midterms.
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